Buying Forward

Buying forward can confuse many people.

But think of buying 'now', the normal buying - here we buy at the current price and there is no ambiguity.

Buying forward is not really much harder to grasp: it is simply the process of buying something (usually a market instrument of some sort or perhaps a currency) in expectation that the price will rise in the future (perhaps due to increased demand).

So this is all it means - essentially that you think the price of something will go up in the future.

Related Articles

Due diligence
Margin
I-Bonds
Credit
Exchange rate

More Financial Words and Vocabulary Explained